1

7
Analyzing
Business Markets
 What is Organizational Buying?

Organizational buying refers to the

decision-making process by which formal
organizations establish the need for
purchased products and services, and
identify, evaluate, and choose among
alternative brands and suppliers.

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 7-2

 Characteristics of
Business Markets
 Fewer buyers  Multiple sales calls
 Close supplier-  Derived demand
customer  Inelastic demand
relationships  Fluctuating demand
 Professional  Geographically
purchasing concentrated buyers
 Many buying  Direct purchasing
influences

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 7-3

 Buying Situation

Straight
Straight rebuy
rebuy

Modified
Modified rebuy
rebuy

New
New task
task

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 7-4

 The Buying Center
Initiators
Initiators

Users
Users

Influencers
Influencers

Deciders
Deciders

Approvers
Approvers

Buyers
Buyers

Gatekeepers
Gatekeepers
Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 7-5
 Of Concern to Marketers
 Who are the major decision participants?
 What decisions do they influence?
 What is their level of influence?
 What evaluation criteria do they use?

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 7-6

 Stages in the Buying Process:
Buyphases
 Problem recognition
 General need description
 Product specification
 Supplier search
 Proposal solicitation
 Supplier selection
 Order-routine specification
 Performance review

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 7-7

 Table 7.2 An Example of
Vendor Analysis

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 7-8